TREASURIES-U.S. bonds stabilise before PMI data
LONDON Nov 30 (Reuters) - U.S. government bonds were stable on Friday, consolidating this week's gains made on the back of worries over sizeable fiscal tightening next year before an expected improvement in business sentiment surveys.
* U.S. lawmakers said they made no significant progress on Thursday on reaching a budget deal to avoid $600 billion of automatic 2013 spending cuts and tax hikes, which could send the economy back in recession.
* Safe-haven U.S. Treasuries have gained slightly this week due to those worries, with 10-year T-note yields falling by about 7 basis points. On Friday, they were 0.7 bps higher at 1.6267 percent.
* The pause in price gains was caused by the prospect of an improved reading in the Chicago PMI sentiment survey for November.
* "I think the PMIs are going to be OK and the market felt it was too long going into them," one trader said.
* This week's fall in T-note yields leaves them right in the middle of a 50 basis points range seen in the second half of this year. (Reporting by Marius Zaharia/editing by Chris Pizzey, London MPG Desk, +44 (0)207 542-4441)
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